Getting paid is one of the best parts of work (aside from having great co-workers and clients). And it is certainly the most important part to other people in our lives, like friendly landlords, banks, and daycare centers. When we get paid, they get paid too.
So if getting paid is so important, why do most workers only get paid once or twice per month?
An article in the New York Times by Stacy Cowley highlights a few startups and employers that are changing the traditional pay periods. Instead of waiting to get paid for time worked, employees are able to access, on-demand, a portion of the wages they’ve already earned.
But on-demand pay is not without its downsides, as the article explains:
On one hand, this could be good news for people who live from paycheck to paycheck. If the trend catches on, it could reduce the demand for products like payday loans, which workers use when they run short of money, but which charge very high interest rates. On the other hand, the services that are providing on-demand wages charge fees every time a worker uses them, so there is a trade-off.